EOS Price Surges Over 10% After Voting System Announcement For Its $35 Million Savings Account

Omar Faridi
  • 29 Aug 2018
  • /
  • In #EOS
  • A voting system will reportedly be implemented so that EOS community members can collectively decide how to spend the funds from the cryptocurrency platform's $35 million savings account.
  • Following this announcement, the price of the EOS token surged by over 10%.

EOS.IO, a blockchain-based platform that aims to facilitate the horizontal and vertical scaling of decentralized applications (DApps), has been criticized for its controversial governance model in which just 21 block producers have most of the control over a multi-billion dollar digital asset network. However, EOS.IO’s native token, EOS, has surged by over 10% in the past 24 hours, according to data from CryptoCompare.

The cryptocurrency’s price shot up after it was announced on August 27th that its developers would be “building a voting system to help with the decision making” for the platform’s $35 million savings account.

No Plans Regarding EOS's Savings Acccount

Block.one, a privately held company focusing on “high performance” blockchain technologies, created the EOS.IO savings account when it began developing the EOS platform in May of 2017. When the savings account was created, EOS’s developers did not formulate any plans regarding how its funds would be spent.

Tp decide where the funds should be invested (or used), the EOS team will be implementing a voting system that will allow the crypto’s community to make decisions regarding how the funds are to be managed. Most of the EOS community members are reportedly supportive of the new voting system, however, it may take some time before they collectively decide how to spend the funds.

Crypto Market Showing Recovery Signs

At press time, EOS tokens are up by over 10% and currently trading at $5.93, with a market capitalization of over $5.3 billion. As reported by CryptoGlobe, Bitcoin (BTC) price surged past $7,000 on August 28th and is currently trading at $7,082.91. This is a significant increase in the flagship cryptocurrency’s price, considering it had dropped below $6,000 around mid-August.

Moreover, it seems that cryptocurrency prices, as a whole, are beginning to recover with NANO, the “global currency”, surging by as much as 84% to $3.27 (per token), before correcting to around $3.07. South Korean firm ICON, which aims to develop communication channels between multiple blockchains (blockchain interoperability), also saw its ICX token surge by over 20% on August 27th to over $.96 but its price has also now corrected to $.90 at the time of writing.

Short-Term Price Movements "Don't Tell Us Much"

According to recent comments from Litecoin (LTC) founder Charlie Lee, “it’s hard to predict [cryptocurrency] prices” and it’s also difficult to determine just how long a bear market will last, or how long it will take for digital currency prices to recover.

Despite the declining market capitalization of the cryptocurrency market, Lee noted that bitcoin and litecoin adoption had actually increased. Moreover, the MIT graduate said that while short-term cryptocurrency price movements “don’t really tell us much...in the future, the price will reflect the success of the [crypto]currencies]."

Hacker Leverages EOS REX to Steal More than $110,000 in Crypto

Michael LaVere
  • Hacker has exploited a bug in gambling app EOSPlay to steal more than $110K in crypto.
  • Scam artist is using EOS REX to leverage CPU resources and flood the EOSIO network. 

A hacker was able to exploit a bug on EOSPlay in order to steal more than $110,000 in cryptocurrency.

Gambling App Manipulation

According to a report by CryptoSlate on Sept. 14, a hacker spent $1,000 in EOS in order to steal more than $110,000 in crypto by leveraging an exploit in the EOS-based gambling application EOSPlay. The scam involved the use of the largest EOS decentralized financial platform EOS REX, which lends crypto in exchange for additional CPU usage on the network's blockchain. 

The report explains the hacker used REX to ensure that blocks were continuously filled with their transactions, thereby allowing them to win every roll on the gambling app.

In addition to exploiting the gambling platform, the report says the flood of =transactions have essentially frozen network function and made EOSIO “unusable.”

Due to leveraging CPU resources through REX, the hacker has crowded out others from participating on the network. Twitter account eosioAlabama described how the hacker could have manipulated the dice roll outcomes, 

The billing rate dynamically increases for CPU and everyone basically gets locked out unless they have more eos staked than the attacker. The attacker had about 1 million eos staked to cpu from Rex in this case

Other EOS users have taken to Twitter with the troubling news that the hacker’s impact may be expanding beyond REX and EOSPlay.

Featured Image Credit: Photo via Pixabay.com